The View Beyond: Earnings growth beyond the Magnificent Seven

Equity markets in 2026 have delivered a volatile ride, with a strong rebound pushing most major indices into positive territory. But as investor focus narrows on AI and the so-called Magnificent Seven, where should attention shift for the remainder of the year—and what risks are hiding in plain sight?In this episode, Ayako Lehmann, Head of Webcasts & Video, is joined by Philipp Lienhardt, Head of Equity Research at Julius Baer, for a deep dive into the drivers of equity market performance in 2026. They discuss regional and sector standouts, the breadth of earnings growth beyond mega cap technology stocks, and the implications of increasing market concentration. The conversation covers sector positioning—why financials, health care, and communications remain overweight—and explores the outlook for subsectors including retail banks, payment networks, pharma, biotech, MedTech, and telecom operators. Philipp also shares practical guidance on avoiding common equity investing mistakes as year-end approaches.(00:00) - Introduction (01:02) - Equity market performance in 2026 (02:47) - Sector winners and laggards year to date (04:10) - Key surprises from the latest earnings season (05:45) - The challenge of beating market expectations (06:05) - Concentration risk and the AI-driven rally (08:28) - Equity research process and sector ranking (10:44) - Overweight sectors: financials, health care, communications (12:31) - Financials: retail banks, payment networks, rating agencies (12:39) - Health care: pharma, biotech, MedTech (17:29) - Communications: internet platforms, telecom operators, AI infrastructure (20:49) - Year-end investing mistakes to avoid (23:17) - Closing remarks (23:43) - Legal information Would you like to support this show? Please leave us a review and star rating on Apple Podcasts, Spotify or wherever you get your podcasts.